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organized or subsidized by the French-speaking or Flemish community, as the case may be.23
This new allocative key gave the French-speaking community 1.8 billion BEF and reduced by the same amount the
Flemish community’s transfer. In order to reconcile the two initial contradictory demands, i.e. to increase by
2.4 billion BEF the French-speaking community’s transfer and maintain the status quo with respect to the Flemish
community’s funding, the communities’ transfers were rounded out by means of an increase in federal government
funding in respect of foreign students and a change in the allocative key pertaining to the communities, which is more
advantageous for Flanders than the previous key, i.e. 33% instead of 20%. Moreover, the French-speaking community
relinquished the supplement to which it was entitled for 1999.
23 Decree I of the French-speaking community of July 5, 1993 respecting the transfer of the exercising of certain fields of jurisdiction from the Frenchspeaking community to the Walloon region and the Commission communautaire française, M.B., September 10, 1993.
Doc. 167 (1992-1993) - n°4, 24.6.1993, Conseil de la Région Wallonne, page 9;Doc. 168 (1992-1993) - n°4, 7.7.1993, Conseil de la Région
Wallonne, page 9.
Decree II of the French-speaking community of July 19, 1993 respecting the transfer of the exercising of certain fields of jurisdiction from the Frenchspeaking community to the Walloon region and the Commission communautaire française, M.B., September 10, 1993.
Tourism, subsidies in respect of local sports infrastructure, affirmative action, industrial conversion and professional retraining, transportation and
certain facets of health care.
Are excluded from the count students who have been identified as being subject to competitive recruiting, i.e. free of charge, in the territory of another
community. 199 Commission on Fiscal Imbalance Indeed, in principle the new criterion should have applied starting in 1999, but because of delayed voting on the
legislation, the mechanism was only adopted in 2000. Consequently, the French-speaking community sustained a loss
of over 2 billion BEF in 1999. While accepting the loss is part of the negotiations, this renunciation runs counter to the
special financing act of 1989, which spurred the Fédération des Instituteurs Francophones (FIC) to bring a complaint
before the court of arbitration in order to demand the repayment of the amount due. To date, the court has not handed
down a decision in this respect. 2.1.4. Circumstances leading to new negotiations Notwithstanding the rectifications made in 1993 to the system implemented by the special financing act of 1989, it
quickly became apparent that the financial position of the communities was untenable. The reason for the budgetary
problems was clearly pinpointed, i.e. the VAT transfer, the main source of financing for the communities, is not tied to
economic growth, unlike the personal income tax transfers granted to the regions. The problem is all the more obvious in
respect of the French-speaking community, which, unlike the Flemish community merged with the F...
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